Tens of thousands of California parents who rely on the state to pay for child care will have until the end of the year to find alternative care before their subsidy is cut off, thanks to an agreement struck with state officials this week.

Under the terms of a court settlement, the 56,000 children who rely on CalWORKS Stage 3 child care will continue to receive the subsidy through the end of the year. Additionally, the local agencies that contract with the state to administer the program are required to work with the families to find other child care options.

Advocates for the recipients sued after Gov. Arnold Schwarzenegger wiped out funding for the program in October by using his line-item veto power, a move designed to save the state $256 million a year. Families were given a week's notice before the subsidies were set to expire on Nov. 1. After the advocates sued, however, an Alameda County judge ordered the state to keep the program running.

Under Wednesday's settlement, which Judge Wynne Carvill signed off on, families that find other child care will transition off CalWORKS before the end of the year, but it allows children to stay in the program until Dec. 31 if their parents have not identified other options.

Democrats in the Legislature hope to persuade Gov.-elect Jerry Brown to fund the program after he's sworn in.